Australians unaware of how much of a stake big four banks have in smaller banks

TWO in three Australians think there is not enough competition in the banking system, and they don't know the half of it.

When asked, Australians are alarmingly ignorant of the true reach of the big four bank's power.

Just 53 per cent of people are aware that Westpac owns St George, having taken it over in 2008, and that's the most informed we get.

An even slimmer 36 per cent know that BankWest is now owned by Commonwealth Bank.

Just 21 per cent are aware UBank is run by National Australia Bank, 14 per cent that RAMS is owned by Westpac and 12 per cent that Aussie Home Loans is one third owned, soon to be majority controlled, by Commonwealth Bank, pending regulatory approval.

Still, four in five Australians firmly believe the big four banks make excessive profits. And two in three want an inquiry to find out why.

The industry body representing credit unions and building societies, Abacus, will today launch a national campaign and website to lobby for an independent inquiry into the banking system.

The survey of 1000 Australians found 65 per cent think there is not enough competition in the Australian banking system.

When asked, people guessed the banks controlled around 70 per cent of all home loans. Figures released last week reveal the big banks are in fact writing 92 per cent of all new loans.

More than half of people, 54 per cent, feel big banks do not treat their customers fairly on home loan rates.

"Australians are angry about the dominance of the major banks,'' the chief executive of Abacus, Louise Petschler, said.

"The Balance Banking campaign will lobby for change to address the imbalance in banking, through a national debate and independent review of our banking system.''

Abacus will launch its website www.balancebanking.com.au today.

The Coalition has already vowed to hold an inquiry into the banking system if elected.

Who owns the smaller banks?

St George owned by Westpac since 2008BankWest owned by Commonwealth Bank since 2008UBank owned by National Australia Bank (founded by NAB in 2008)RAMS owned by Westpac since 2008Aussie Home Loans owned by Commonwealth Bank (intention to take majority stake announced in 2012)Bank of Melbourne owned by Westpac since 1997Bank SA owned by Westpac since 1997